Bloomberg Intelligence’s Chief Commodity Strategist, Mike McGlone, has raised concerns about the potential impact of Bitcoin’s performance on the broader U.S. economy. McGlone took to Twitter to share a screenshot from a recent Bloomberg report, highlighting a crucial point regarding Bitcoin’s current price level.
According to McGlone, if Bitcoin fails to surpass its current level of $30,000, it could signal trouble for the entire U.S. economy. Many consider Bitcoin to be a leading indicator in the financial markets, often referred to as “the fastest horse in the race.” Therefore, if it remains stagnant despite the anticipation surrounding the potential launch of a Bitcoin spot ETF, it may indicate larger economic issues for the United States.
Bitcoin Price Only Surged By 5%
McGlone points out that while the Nasdaq Composite index has surged by almost 20% since the end of Q1, Bitcoin’s price has only risen by 5%. He suggests that the recent rally in risk assets has not been mirrored in Bitcoin’s performance. The strategist further elaborates that for Bitcoin to see significant growth, it might have to go through a substantial drop first. If Bitcoin fails to break out of its current range, around $30,000 per coin, it could potentially foreshadow economic headwinds and the possibility of a deflationary economic storm.
Regarding the recent filing for a Bitcoin spot ETF by BlackRock, McGlone believes that the initial price surge it caused may be short-lived, similar to the impact of Bitcoin futures’ emergence in December 2017. He speculates that the SEC might not approve the ETF this year, if ever. Furthermore, Bloomberg analysts predict that the U.S. could face a recession in the second half of 2023.
At the time of writing, Bitcoin’s price is approximately $30,242, showing a modest increase of nearly 1% in the past 24 hours. As the cryptocurrency market continues to be closely watched for any signs of volatility or stagnation, experts like McGlone emphasize the potential implications of Bitcoin’s performance on the overall economic outlook.
